FX.co ★ Technical analysis of GBP/JPY for February 26, 2018

GBP/JPY is expected to trade with bullish outlook. The pair has just broken above its previous declining trend line, which should confirm a bullish reversal. A strong support base has formed around 131.00, which should limit any downward attempts. Last but not least, the relative strength index is bullish, and calls for a new upleg.

To conclude, as long as 148.80 is not broken, look for further advance to 149.60 and 150.00 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended to be above 149.50 with the target at 150.00.

Strategy: BUY, Stop loss at 148.80, Take profit at 149.50

Chart Explanation: The black line shows the pivot point. The price above the pivot point indicates long positions; and when it is below the pivot point, it indicates short positions. The red lines show the support levels, and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 149.60, 150.00, and 150.50

Support levels: 148.50, 147.96, and 147.50